My wife sold a property in September 2017 for Rs 1.5 crores. The agreement mentioned that the purchaser would deduct 1% of the sale amount and deposit in the vendor's Pan Card Account. The purchaser did not deduct the amount and paid the full amount as he had received the cheque of that amount from the bank. However to enable the purchaser to comply with the tax laws, we arranged to immediately transfer the amount of Rs 1.5 lakhs to the purchaser's account. Despite several reminders, he has to date not deposited the amount in my wife's PAN Card account. He is not responding to my calls. What is the easiest way for me to ensure that the amount of Rs 1.5 lakhs is deposited by him in my wife's account. I am a senior citizen and cannot run after the guy.
1 Answers
Dear Sir,
The buyer of the property needs to deduct the said TDS before making the payment to the seller.
The onus of deduction lies with the buyer. In case, he has not co-operating in this regard, he will surely get the Tax notice from the IT dept very soon. He may have to shell out penalty and interest on non-payment of TDS amount.
You may kindly let him know the consequences...
In case, he deducts the TDS then Capital gains made from the sale of property along with the TDS information present in the Form 26AS will have to reported in the seller’s income tax return.
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